If you’re new to the commercial real estate investing scene, it can take a while to locate a good type of property to start out with. Do some research on your own to learn about the commercial real estate market in your area.
As you comb through possible brokers, search for those who have extensive experience in commercial markets. Don’t use a broker who doesn’t specialize in the type of real estate investment you’re interested in. Once you’ve determined the broker is right for your needs, make sure any agreement into which you enter is an exclusive one.
When having your real estate inspected (as you should), always ask for the qualifications of the inspectors. Pay particular attention to credentials when it comes to pest inspections, since it is not uncommon to encounter people working in pest removal without a license. Staying on top of this will help you avoid issues after the deal is completed.
Choose simple, strongly constructed buildings if your plan is to purchase real estate for the sole purpose of renting or leasing it. These types of buildings attract tenants more quickly than other buildings, as prospective tenants know that the building is less likely to have maintenance issues. Not are the buildings more sturdy, there will be less maintenance issues for the owner and the tenant.
Be certain the commercial property you are considering has good utilities access. The property must have access to electric, water, sewer and maybe gas for it to be a viable commercial real estate purchase.
When considering a piece of property, you must pay close attention to the surrounding area. Buying property in an affluent neighborhood is likely to mean that any business which opens there will be successful thanks to having a clientele with a large disposable income. Or, if you are offering a service particularly attractive to the less wealthy, you should purchase in a less well-to-do area.
If you are considering leasing a property to someone else, then cover all your bases to reduce the risk of a default. That will cut down on the likelihood that the tenant defaults on a lease. This is something you want to avoid.
If you are hunting among multiple properties, make a checklist for touring sites. Accept the proposal responses from the first round, but be sure to inform the property owners directly if you decide to go further in your inquiries. Do not be scared to let the owners know about other properties you have in mind. It could even get you a good deal.
In a commercial loan, the borrower must order the appraisal. The bank won’t accept it as valid. Order it yourself to cover your bases.
Stick with a firm that is looking out for your best interests before you enter into an agreement. If not, you may eventually pay dearly for an easily avoided mistake.
Prior to committing to working with a real estate broker, you should first determine how they prefer to conduct business. Know what sort of education and background they have. Ensure that the broker fights tooth and nail to get you the best price on your property, but make sure he or she doesn’t use underhanded tactics. Ask to see examples of past successful and unsuccessful negotiations.
Buying and selling commercial real estate requires the help of an experienced agent. Utilize this advice to gather as much information and stay as knowledgeable as you possibly can.